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FIRST  MORTGAGE  BONDS  AS  AN  INYESTMENT. 


MARCH,    187  1. 


JOHN    VV  .    A  M  E  R  M  A  N  ,    PRINTER, 
No.  47  Cedar  Street. 


1871. 


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ompanj). 


W.  D.  JUDSOX,  President, New- York. 

AMOS  TEXXEY,  Treasurer, 

F.  E.  JOXES,  Secretary,  Chicago. 

Z.  F.  SUMMERS,  Chief  Engineer,       .... 

ililif(D13. 

JAMES  W.   ELWELL, Xew-York. 

JAMES  D.  FISH, 

W.  D.  JUDSOX,  

AMOS  TEXXEY, 

MATTHEW  TAYLOR, 

JARVIS  WILLIAMS, Boston. 

X.   F.  MERRILL, Chicago. 

WILLIAM  YOUXG, Valparaiso,  Ind. 

ALVAX  GILBERT,        .        .        .        ...        .        .        RossviLLE,  III. 

WxM.  R.  FOSDICK,  Ex-Pres't  St.  Nicholas  Nat.  Bank,  New- York. 
JAMES  D.  FISH,  President  Marine  National  Bank, 


^1S  5.  0^77  -3 


^439'".  M.M^ 


To  the  Holders  of  Five-Twenties  or  other  funds  for  invest^ 
ment : 

YouK  attention  is  especially  called  to  the  First  Mortgage 
Seven  Per  Cent.  Gold  Bonds  of  the  Chicago,  Danville  and 
Yincennes  Eail-Eoad,  which  are  still  selling  at  87i-  and  ac- 
crued interest,  as  having  claims  to  the  confidence  of  invest- 
ors, such  as  those  of  other  new  rail-roads  have  seldom,  if 
ever,  possessed. 

This  Company's  Koad  extends  from  Chicago,  the  chief 
rail-road  centre  of  the  West,  through  the  Eastern  Counties  of 
Illinois,  to  the  City  of  Danville,  and  thence  to  a  junction 
with  the  Evansville,  Terre  Haute  and  Chicago  Kail-Road,  with 
which  it  forms  a  continuous  line  through  the  Western 
Counties  of  Indiana  to  Evansville,  on  the  Ohio  Eiver.  Its 
general  route  is  from  North  to  South,  across  the  richest  and 
most  thickly-settled  portions  of  Illinois  and  Indiana,  and  it 
connects  with  Chicago  four  important  cities  on  its  line,  that 
for  want  of  rail-road  facilities  have  hitherto  had  but  a  limited 
trade  with  that  important  metropolis.  And  not  the  trade  of 
the  cities  only,  but  the  grain,  cattle,  hogs,  sheep,  and  all  the 
surplus  products  of  the  fine  country  that  the  road  traverses 
and  controls,  will  seek  the  Chicago  market,  to  be  exchanged 
for  lumber,  building  materials,  merchandise,  groceries,  furni- 
ture, etc. 

From  the  country  beyond  the  Ohio,  too,  and  from  places  all 
along  the  "  through  line  "  to  the  Gulf,  a  considerable  volume 
of  trade  will  be  added  to  the  above. 

Local  trafiic  and  travel  derived  from  a  rich  agricultural 
country,  that  abounds  at  the  same  time  in  mineral  wealth, 
such  as  coal   and  iron,  is  by  far  the  most  certain  and  most 


profitable  traffic.  Xo  territory  can  give  better  support  to  a 
rail-road  than  that  which  is  covered  with  thick  farming  set- 
tlements, thriving  towns  and  villages,  and  successful  manu- 
facturing establishments.  Measured  by  this  standard,  no 
one  of  all  the  Illinois  rail-roads  can  pour  a  larger  trade  into 
Chicago  than  the  Chicago,  Danville  and  Yincennes. 

On  a  well  built  road,  under  economical  and  honorable 
management,  a  large  traffic  is  the  safest  and  surest  basis  of 
its  bonded  debt.  And  having  at  least  as  good  a  business, 
this  Companj^'s  Road  ofiers  as  good  a  bond  as  the  older 
Chicago  Rail-Roads,  whose  honds  are  esteemed  among  the  hest 
in  the  country.  The  only  thing  lacking  is  the  completion  of 
the  road,  and  a  few  months'  time  will  suffice  for  that  ac- 
com})lishnient. 

But  besides  all  this,  and  more  important  than  all,  the 
recent  discoveries  and'demonstrations  in  the  ''  coal  fields  "  of 
Indiana  revolutionize  the  iron  manufacture  and  iron  trade 
of  the  Western  country.  The  carrying  trade  of  coal  and 
iron  for  the  future  is  assured,  in  large  measure,  to  the  rail- 
roads leading  from  these  coal  fields,  x^s  afuel  for  all  manufac- 
turing purposes,  for  locomotives  and  for  general  domestic 
uses,  there  is  no  better  coal  in  America.  Directlv  alono^  the 
line  of  our  road  there  are  "block-coals"  enough  and  native 
ores  enough  to  run  a  thousand  blastfurnaces  for  a  thousand 
years,  without  materially  diminishing  the  quantity.  There 
is  nothinoj  better  in  the  world  for  smelttno;  iron  ores  than 
these  coals,  and  nothing  that  produces  the  best  iron  at  so 
small  a  cost.  Lars'e  iron  manufacturers  must  come  to  this 
region  as  they  have  done  and  are  doing,  or  else  be  left  behind 
in  competing  for  the  iron  business  of  the  West. 

The  ra])id  multiplication  of  blast-furnaces  and  rolling-mills 
along  and  near  this  line  of  road  positively  assures  to  the 
Chicago,  Danville  and  Yincennes  Rail-Road  a  business  in 
carrying  coals  northward,  and  Lake  Superior  iron  ores  south- 
ward, that  will  be  simply  enormous,  such  as  no  other  new 
rail-road  in  the  West  or  in  the  East  ever  possessed  or  con- 
trolled.    A  small  opening  of  the  Brazil  coal  fields  has,  in  a 


short  time,  doubled  the  business  of  the  Terre  ITaiUe  and 
Indianapolis  Eail-Road.*  But  this  is  only  a  slight  indication 
of  what  the  general  opening  of  these  mines,  and  the  carrying 
of  their  coals  to  Chicago  and  the  Northwest,  will  add  to  the 
otherwise  large  earnings  of  this  Company's  road. 

Ent  notwithstanding  the  enormous  trafhc  that  is  ready  to 
press  upon  this  line  at  its  completion,  and  notwithstanding 
the  Company  are  building  the  best  new  road  in  all  that  sec- 
tion of  country,  the  "  londed  debt "  of  the  roadis  only  ^18,000 
per  mile,  less  than  half  the  debt  of  other  roads  whose  bonds, 
without  a  business  to  protect  them,  are  claimed  to  be  the 
very  best  in  the  market  for  investment.  Moreover,  this  small 
debt  of  $18,000  per  mile  is  toe  only  debt  of  the  Company, 
while  it  is  the  first  and  only  lien  upon  the  Company'' s  road, 
property  and  franchises. 

This  Company's  road  will  be  finished  and  the  cars  running 
to  Watseka,  84  miles  from  Chicago,  in  a  few  days.  Iron  has 
been  jDurchased  for  all  the  unfinished  part  of  the  road,  ties  are 
being  prepared,  and  every  thing  indicates  the  earl}-  completion 
of  the  work.  The  Evansville,  Terre  Haute  and  Chicago  Road 
is  completed  from  the  Ohio  north  to  Newport,  130  miles, 
leaving  not  more  than  25  miles  to  build.  The  Evansville, 
Henderson  and  Nashville  Eail-Road  has  just  been  opened  over 
its  entire  length.  From  Nashville  to  Pensacola  there  remains 
some  40  miles  to  build  on  the  Northern  Alabama,  and  60 
miles  on  the  Selma  and  Gulf  Rail-Road.  As  it  is  the  interest  of 
these  several  roads  to  push  forward  the  construction  and  close 
up  the  gaps,  it  would  seem  probable  that  the  entire  "  Through 
Line  "  wnll  be  opened  by  early  autumn. 

The  Chicago,  Danville  and  Yincennes  Company  have  made 
arrangements  for  depot  accommodations  in  the  city,  whereby 
its  passenger  and  freight  business  will  be  as  well  provided  for 
as  that  of  any  road  leaving  Chicago. 

The  Company  have  issued  Two  Million  Five  Hundred 
Thousand  Dollars  of  First  Mortgage  Sinking  Fund  Bonds, 

*  Indiana  State  Geologist's  Report,  p.  21. 


having  forty  years  to  run,  bearing  seven  per  cent,  interest, 
payable  semi-annually  in  New-York,  both  principal  and 
interest  payable  in  United  States  gold  coin. 

The  bonds  are  in  sums  of  $1,000  each.  The  interest  upon 
them,  at  the  rate  of  seven  per  cent,  per  annum  in  gold,  is 
payable  semi-annually  on  the  first  days  of  Ayjril  and  October 
of  each  year,  in  the  City  of  New-York.  They  have  semi- 
annual coupons  attached,  but  they  may  be  registered  by  any 
purchaser,  in  the  Union  Trust  Company  of  New-York,  for 
protection  against  loss  or  accident. 

About  one-half  of  the  loan  has  already  been  negotiated, 
and  the  proceeds  of  the  balance,  with  the  remaining  subscrip- 
tions which  have  been  made  to  the  capital  stock,  will  be 
amply  sufficient  to  complete  and  equip  the  entire  road. 

The  Price  of  the  Bonds  is  87*  and  Accrued  Interest. 

The}^  may  be  obtained  of  the  banks  and  bankers  wlio  are 
acting  as  the  Company's  agents  for  the  sale  of  them,  in  the 
chief  cities  and  towns  in  New-York,  New-England,  Penn- 
sylvania and  Maryland. 

Where  there  is  no  agent,  they  may  be  had  by  correspond- 
ence directly  with  the  Company,  at  their  office,  No.  38  Pine- 
street,  New-York.  Remittance  may  be  made  through  any 
Bank,  and  the  bonds  will  be  sent  by  express,  free  of  all 
charges  to  the  purchaser. 

^W  Agents  will  please  order  their  Bonds  directly  of 
the  Company,  who  will  receive  Five-Twenties  or  other 
marketable  securities  in  payment,  and  return  by  Ex- 
press any  surplus  with  the  bonds. 

By  order  of  the  Board. 

W.  D.  JUDSON, 

P7'esident. 

New-York,  March  20th,  1871. 


The  following  letters  will  be  read  with  interest  by  parties 
who  are  seeking  further  and  more  complete  information  : 

Marine  National  Bank, 
Neio-Yorh^  February  \Uh,  187L 
W.  D.  JuDsoN,  Esq., 

President  Chicago,  Danville  and  Yinoennes 

Bail-Road  Comjpany  : 

Dear  Sir,— In  answer  to  numerous  inquiries  made  of  me 
as  one  of  the  Trustees  for  the  bondholders,  by  letter  and 
otherwise,  as  to  the  security  and  value  of  the  First  Mortgage 
Bonds  of  your  rail-road,  I  will  reply  by  a  letter  addressed  to 
you : 

First.— 'T1\\Q  bonds  of  your  Company  are,  in  my  judgment, 
a  good  investment.  They  are  based  upon  a  property  so  val- 
uable as  to  secure  the  payment  of  interest  on  them  from 
earnings  of  the  road. 

Second. — Tliey  are  the  first  and  only  lien  upon  the  road 
and  its  equipment,  the  franchises,  and  all  present  and  future 
acquired  property  of  the  Company. 

Third. — The  Sinking  Fund,  created  and  set  aside  by  the 
provisions  of  the  mortgage,  will  be  sufficient  in  amount  to 
retire  the  whole  issue  of  these  bonds  at  or  before  maturity. 

Fourth.— Th.Q\'Q  cannot  be  issued  over  two  million  live 
hundred  thousand  dollars,  according  to  the  terms  of  the 
mortgage. 

Fifth. — Forming,  as  this  road  does,  part  of  an  "Air  Line" 
from  Chicago  to  Pensacola  and  Mobile,  850  miles  in  length, 
about  three-quarters  of  which  is  already  completed,  running 
through  Danville,  Terre  Haute,  Yincennes,  Evansville, 
Henderson,  Hopkinsville,  Nashville,  Decatur  and  Selma,  the 
expectation  of  a  large  through  freight  and  passenger  busi- 
ness seems  to  be  reasonable  and  well  founded. 


8 

^Sixth. — Assnminc'  the  statements  of  tlie  State  Geolosrist 
of  Indiana  and  his  assistants  to  be  correct,  as  to  the  vast 
quantity  of  coal  found  along  and  near  this  line,  and  the  un- 
surpassed qualitj'  of  this  coal  for  smelting  iron  ores,  as  well 
as  for  general  manufacturing  and  domestic  purposes,  this 
road  must  do  a  verv  larire  business  in  carryinij  coals  in  one 
direction,  and  iron  ores  as  return  freights  in  the  other. 

AVhether  the  amount  of  this  coal  business  shall  approxi- 
mate to  tiiat  of  the  Lehigli  Valley  Road,  Pa.,  or  to  the 
Reading  Road,  which  has  risen  from  less  than  two  million 
tons  carried  in  1860,  to  more  than  four  and  a  half  million 
tons  carried  in  187«.i,  time  alone  can  determine. 

Seventh. — It  seems  to  me  evident  that,  with  a  rich  asri- 
cultural  country  from  the  Ohio  River  upwards  to  furnish  its 
local  traffic,  and  with  coal  and  iron  in  illimitable  quantities 
to  be  carried  to  a  ready  market,  your  rail-road  has  a  basis  of 
strength  and  security  for  its  bonds  that  could  not  be  better, 
and  that  these  bonds  are  entitled  to  the  full  confidence  of 
parties  seeking  a  good  and  safe  investment. 

Very  truly  yours, 

J.  D.  Fish,  Trustee. 


*  Prof.  E.  T.  Cox,  State  Geologist  of  Indiana,  in  his  Report, 
Jan.  1st,  1870,  says,  pp.  30,  47:  "  Block  Coal  is  a  name  used 
by  miners  to  designate  a  variety  of  non-caking  bituminous 
coal"  ■"  '^''  *  "  that  mav  he  mined  in  laro;e  cubes  or  blocks, 
which  exhibits  the  whole  depths  of  the  bed."  ^  *  *  "  In 
coking,  it  scarcely  swells  or  changes  form,  and  never  cakes 
or  runs  together.  It  is  this  latter  character  whicli  gives  to 
the  'block  coal'  its  peculiar  value  as  a  fuel  for  smelting  iron 
ores  ;  while  it  has  sufficient  bitumen — in  the  form  of  gaseous 
matter — to  render  it  highly  inflammable;  and  the  blocks 
retain  their  shape  until  burnt  to  ash,  in  such  a  manner  as 
will  admit  the  read}"  passage  of  the  blast  and  flame  through 
the  entire  mass  of  fuel,  ore  and  flux." 


9 

"  The  discovery  of  Block  Coal  in  Yerraillion  County  was 
first  made  public  through  the  newspapers,  on  the  15th  of 
November,  1869."— P.  132.  "  Yermillion  County  is  thirty- 
six  miles  long,  and  varies  in  breadth  from  five  to  ten  miles, 
with  an  average  of  a  little  less  than  seven,  thus  including  an 
area  of  249  square  miles." — Prof.  Bradley,  p.  1 38.  "  The  final 
conclusion  of  the  scientific  explorer  must  be,  that  good  coal 
can  now  be  mined  profitably  under  at  least  one-half  the  area 
of  the  county,  and  tiliimately  under  probably  two-thirds  of 
the  remainder.  A  thickness  of  eight  feet  would  be  a  small 
enough  estimate  for  coal  underlying  every  square  foot  of  the 
county.  This  would  give,  at  the  usual  estimate  of  one  mil- 
lion tons  to  the  square  mile  for  every  foot  of  thickness,  the 
amount  of  1,950,000,000*  tons  as  the  supply  of  the  county." 
— Pp.  161,  162.  Prof.  Cox  says,  p.  13Y:  "  As  many  as  three 
thick  seams  of  coal,  with  a  total  depth  of  twelve  to  sixteen 
feet,  are  found  over  a  large  area  of  this  county,  and  the  qual- 
ity will  compare  favorably  with  that  of  any  other  coals  in 
tlie  State."  Prof.  Cox  again  states,  pp.  133,  131::  '-The 
Evansville,  Terre  Haute  and  Chicago  Kail-Koad  runs  through 
the  entire  length  of  this  '  Block  Coal'  field,  and  will  aflbrd  ex- 
cellent facilities  along  its  line  for  the  location  of  blast  furna- 
ces." *  **  "As  this  rail-road  connects  at  Danville  with 
another  rail-roadf  running  direct  to  Chicago,  no  location  in 
the  '  Block  Coal'  region  of  the  State  can  be  more  favorable 
for  manufacturing  iron,  and  for  obtaining  Lake  Superior  iron 
ores  at  a  low  rate  of  frei2;htao;e." 


*  At  $2.50  per  ton  for  Block  Coal,  which  is  the  "  Cannel"  Coal  of  our  mar- 
ket, and  $2.00  per  ton  for  Caking  Coal,  which  is  the  ordinary  "  Liverpool 
Coal,"  the  value  of  coal  in  this  county  alone  would  amount  to  $4,387,500,000. 

The  State  Report,  p.  69,  puts  the  value  of  the  coal  in  Clay  County  at 
($4,364,000,000)  four  billion  three  hundred  and  sixty -four  million  dollars.  But 
vast  as  this  quantity  is,  it  is  by  no  means  all  that  lies  within  the  reach  of 
the  Chicago,  Danville  and  Vincennes  Rail-Road,  with  its  connecting  and 
co-operating  roads. 

f  The  Chicago,  Danville  and  Vincennes  Rail-Road. 


10 


From  the  late  President  of  the  Chicago  and  North  Western  Rail-Road  Co.} 

New- York.,  Decemher  17,  1870. 
W.  D.  JuDsoN,  Esq., 

President  Chicago.,  Danville  and  Vincennes  R.  R.  Co.  : 

Dear  Sir, — During  tlie  past  summer,  while  in  Chicago,  my 
attention  was  drawn  to  the  high  character  and  quality  of  the 
Indiana  Block  Coal,  and  tlie  importance  of  it  to  Chicago  and 
the  country  west  of  it,  now  and  hereafter. 

I  have  no  doubt  that  a  road  directly  to  the  coal  field  from 
Chicago,  and  \vitli  free  access  to  the  Lake  Superior  iron  ores 
at  Chicago,  would,  about  as  soon  as  completed,  find  itself 
fully  occupied  in  transporting  the  Brazil  or  Block  Coal  of 
Indiana  to  Chicago,  and  the  iron  ores  of  Lake  Superior  from 
Chicago  to  the  vicinity  of  this  Block  Coal,  and  to  the  furnaces 
already  there,  and  to  others  that  will  be  constructed  there  as 
soon  as  the  ores  mentioned  can  be  economically  transported 
to  them. 

The  Block  Coal  of  Indiana  and  the  ores  of  Lake  Superior 
are  not  excelled  in  their  high  qualities  and  adaptation  to  the 
making  of  cheap  first  quality  of  iron ;  and  when  brought 
together  by  rail,  must  supply  the  entire  West  with  advantage 
and  economy,  that  cannot,  so  far  as  I  can  now  see,  soon,  if 
ever,  be  excelled. 

Your  Chicago,  Danville  and  Vincennes  Eail-Eoad,  in  con- 
nection with  the  Evansville,  Terre  Haute  and  Chicago  Eail- 
way,  now  being  built,  will,  as  I  understand  it,  soon  bring  these 
ares  and  coals  together  ;  and  I  have  no  doubt  that  when  so 
completed  and  opened,  the  coal  and  iron  trade  alone  will  sup- 
port the  investment  from  the  beginning,  and  will  increase 
yearly  for  many  years. 

Besides  the  coal  and  iron  traflfic  to  result  from  the  con- 
struction of  your  rail-road,  however,  it  must  have  the  local 
business  of  the  fine  country  through  which  it  passes,  and 


11 

the  business  of  other  roads  with  which  it  connects  and  co- 
operates. 

Its  construction  through  a  very  level  country  of  alluvial 
soil  will  be  easy  and  inexpensive,  and  there  is  no  reason  to 
doubt  that  with  fair  management,  its  earnings  will  be  ample 
to  the  payment  of  interest  on  all  its  bonds  from  the  time 
of  completion,  and  will  soon,  if  not  from  tlie  first,  increase 
and  be  equal  to  a  fair  return  on  its  stock. 

Yours,  very  truly, 

W.  B.  Ogden. 


[From  the  President  of  the  Pittsburgh,  Fort  Wayne  and  Chicago  Railway  Co.  ] 

New-  York,  March  12,  1870. 
Messrs*  W.  Bailey,  Lang  &  Co. : 

Gentlemen, — I  am  familiar  witli  the  line  of  the  Chicago^ 
Danville  and  Yincennes  Rail-Road,  as  far  south  from  Chicago 
as  I  presume  it  is  proposed  to  build  it.  It  passes  through  a 
very  productive  agricultural  country,  and  will  have,  in  addi- 
tion, a  large  coal  traffic  from  the  Block  Coal  fields  of  In- 
diana. 

The  road  is  not  expensive  to  build,  nor  will  it  be  expensive 
to  maintain  and  operate,  and  cannot,  with  proper  manage- 
ment, fail  to  pay  interest  on  its  cost. 

I  have  been  twice  over  that  portion  of  the  road  now  com- 
pleted and  in  operation,  and  found  the  road-bed  well  made, 
and  the  track  the  best  neio  track  I  have  ever  traveled  over  of 
any  Western  road. 

Truly  yours, 

G.  W.  Cass. 


12 


Office  Chicago  Iron  Company, 
45  Dearbokn  Street, 

Chicago,  January  il,  1871. 
W.  D.  JuDSox,  Esq., 

President  Chicago,  Dativille  and  Vincennes  li.  It.  Co.: 

Deak  Sik, — We  are  anxiously  waiting  for  the  completion 
of  your  road  to  tlie  Block  Coal  fields  of  Indiana,  so  that  we 
can  compete  successfully  -vritli  other  localities  in  making  Pig 
Iron. 

The  long  and  circuitous  route  by  which  this  coal  now 
reaches  Chicngo,  makes  its  cost  too  great ;  and  what  we  need, 
to  make  Chicago  the  great  manufacturing  centre  of  the  coun- 
try west  of  the  Alleghanies,  is  cheap  fuel  to  smelt  the  ores 
of  Lake  Superior. 

With  these  ores  and  the  Block  Coal  of  Indiana,  we  can 
make  an  excellent  quality  of  Pig  Iron  suitable  for  the  general 
foundry  and  mill  uses,  and  I  have  no  doubt  but  that  it 
will  be  found  to  be  pure  enough  to  make  the  best  quality  of 
Bessemer  Steel  for  rails. 

At  the  price  at  which  you  propose  to  deliver  this  coal,  on 
the  completion  of  your  road,  iron  can  be  made  here  at  fully 
$2  per  ton  less  than  it  can  be  done  in  Pittsburgh,  and  of  afar 
better  quality. 

The  Lake  Superior  ores  are  delivered  here  at  $1  to  $1.50 
per  ton  less  than  they  are  at  Erie,  Cleveland,  Detroit,  or 
Buffalo.  The  distance  from  Escanaba,  the  great  shipping 
point  for  ore  to  Cleveland,  is  800  miles ;  while  to  Chicago  it 
is  about  300  miles.  Westward-bound  freights  on  the  lakes 
are  from  one-third  to  one-half  less  than  Eastward-bound,  the 
great  bulk  of  our  shipments  being  in  that  direction,  moving 
our  cereals,  provisions,  &c. 

This  is  a  geographical  fact  which  will  always  be  in  favor 
of  Chicago;  and  as  we   increase  in  manufacturing  our  own 


13 

rails,  steel  and  other  heavy  articles,  the  advantages  v/ill  be 
still  more  apparent. 

Last  season,  the  selling  price  of  Lake  Superior  6tj  per  cent, 
ores  at  Escanaba,  was  p'>  ])er  ton;  freight  to  Cleveland^ 
§2.50  ;  dockage  and  treiiiht  to  Pittsburgh,  (1  fiO  miles,  by  rail,) 
$3 — making  cost,  delivered  there,  $11.50  per  ton. 


]|-  tons  to  make  a  ton  of  iron,  is $17.25 

80  bushels  coke,  at  T-|c., 6.00 

Cost  of  ore  and  fuel  for  one  ton  iron, $23.25 

To  make  it  /lere,  would  cost : 

li  tons  ore,  at  $7.25, $10.62^ 

2^     ''     Indiana  Block  Coal,  at  $4.25, 10.62^ 

$21.25 


Making  a  saving  in  favor  of  Chicago  of  $2  per  ton.  The 
freight  on  Pig  Iron  from  Pittsburgh  is  $5  per  ton  ;  thus 
making  cost  of  iron  made  here  $7  per  ton  less  than  it  can  be 
made  in  Pittsburgh  and  delivered  here. 

It  is  difficult  to  estimate  the  advantages  which  will  accrue 
to  the  benefit  of  Chicago  and  the  Great  West,  when  we  are 
enabled  to  manufacture  our  own  iron  and  steel,  nails,  <fec.,  at 
as  low  a  rate  as  can  be  done  in  Pittsburgh.  The  saving  in 
freights  alone  would  build  and  equip  a  road  the  length  of 
yours  each  year. 

The  coal  traffic  of  the  Chicao-o  and  Alton  Rail-Eoad  last 
year  was  over  200,000  tons,  and  I  have  no  doubt  but  that 
yours  (being  so  pre-eminently  required  for  manufacturing- 
purposes)  would  largely  exceed  that  in  a  short  time. 

Yours  very  truly, 

A.  B.  Mekker,  President. 


'r.m  A*%^'«  •  r,0.9 


14 


COPY  OF  THE  BOND. 

No. ■■ —  State  op  Illinois.  $1,000. 

CHICAGO,  DANVILLE  AND  VINCENNES  RAIL-ROAD  COMPANY. 

FiKST  Mortgage  Seven  per  cent.  Sinking  Fund  Bond. 

Piincipal  and  Interest  Par/able  in  Gold. 

Know  all  men  by  these  presents,  tliat  the  Chicago,  Danville  and  Vincennes 
Rail-Road  Company,  a  corporation  existing  under  the  laws  of  the  State  of  Illi- 
nois, for  value  received,  acknowledges  itself  indebted  to  Joseph  E.  Young  in 
the  sum  of  one  thousand  dollars,  in  United  States  gold  coin  at  par,  which  it 
promises  to  pay,  in  the  City  of  New- York,  to  him  or  bearer,  on  the  first  day  of 
April,  in  the  year  one  thousand  nine  hundred  and  nine,  with  interest  at  the 
rate  of  seven  per  centum  per  annum,  in  gold  coin  as  aforesaid,  payable  semi- 
annually on  the  first  days  of  April  and  October  in  each  year,  on  the  delivery 
of  the  annexed  interest  warrants,  in  the  City  of  New-York,  at  such  place  as 
may  be  designated  by  said  Company  by  advertisement  published  in  said  city. 

This  bond,  with  others  of  like  tenor  and  date,  amounting  in  the  aggregate 
to  a  sum  not  exceeding  two  millions  and  five  hundred  thousand  dollars,  is 
secured  by  a  mortgage  on  the  rail-road,  franchises,  income,  equipments  and 
property  of  said  Company,  duly  made  and  delivered  to  trustees,  whose  names 
are  signed  to  the  certificate  of  authentication  of  this  bond,  for  the  benefit  of 
the  holder  hereof,  dated  the  tenth  day  of  March,  one  thousand  eight  hiandred 
and  sixty-niae,  and  duly  recorded. 

This  bond  is  entitled  to  all  the  benefit  to  be  derived  from  a  Sinking  Fund, 
to  be  annually  created  and  invested  as  provided  for  in  the  deed  of  trust  or 
mortgage  above  referred  to.  And  it  is  agreed  between  said  Company  and 
the  holder  of  this  bond,  that  no  recourse  shall  be  had  for  its  payment  to  the 
individual  liability  of  any  stockholder  of  said  Company  ;  and  that  in  case  of 
any  default  in  the  payment  hereof,  the  said  Company  hereby  waives  the 
benefit  of  any  extension,  stay  or  appraisement  laws  now  existing  or  that  may 
hereafter  exist. 

This  bond  shall  pass  by  delivery,  or  by  transfer  on  the  books  of  the  Com- 
pany, in  the  City  of  New- York.    After  a  registration  of  ownership,  certified 


15 

hereon  by  the  Transfer  Agent  of  the  Company,  no  transfer,  except  on  the 
books  of  the  Company,  shall  be  valid,  unless  the  last  transfer  be  made  to  bearer 
by  the  Transfer  Agent  of  the  Company,  which  shall  restore  transferability  by 
delivery  ;  but  this  bond  shall  continue  subject  to  successive  registrations  and 
transfers  to  bearer  as  aforesaid,  at  the  option  of  each  holder. 

This  bond  shall  not  be  valid  or  obligatory  until  it  shall  have  been  authenti- 
cated by  a  certificate  endorsed  hereon,  and  duly  signed  by  the  Trustees  under 
the  mortgage  aforesaid. 

In  witness  whereof,  the  said  Company  have  caused  the  foregoing  to  be 
attested  in  its  behalf  by  its  President  and  Secretary,  and  its  corporate  seal  to 
be  affixed  hereto,  and  the  interest  warrants  hereto  annexed  to  be  signed  by  its 
Secretary,  at  the  City  of  Chicago,  in  the  State  of  Illinois,  this  tenth  day  of 
March,  eighteen  hundred  and  sixty-nine. 

_ President. 


Secretary. 


[Coupon.] 
$35. 

The  Chicago,  Danville  and  Vincennes  Rail-Road  Company  will  pay  the 
bearer,  at  its  agency  in  the  City  of  New- York,  thirty-five  dollars,  in  coin,  on 

the  first  day  of  — A.  D. for  semi-annual  interest  on  its  First 

Mortgage  Bond  No. 

Secretary. 


[Endorsement.] 

No. Chicago,  Danville  and  Vincennes  Rail-Road  Company.     Seven  per 

cent.  Sinking  Fund  Bond.  $1,000.  Principal  and  interest  payable  in  United 
States  Gold  Coin,  at  par.  Principal  payable  April  1st,  1909.  Interest  pay- 
able April  1st  and  October  1st,  in  New-York. 

[Trustees'  Certificate.] 

We  certify,  that  this  bond  is  one  of  a  series  amounting  to  $3,500,000,  de- 
scribed in  and  secured  by  the  Deed  of  Trust  or  Mortgage  mentioned  herein, 
bearing  date  March  10th,  1869,  which  is  recorded  according  to  law. 


Trustees. 


/" 


